Ontario Accounting Software Dealer and Integration Apps
Service businessA retiring owner's accounting-software dealership in Ontario serves about 140 active clients, and a sister company owns add-on apps for the same software.
Ask C$600K · Profit C$183K · 3.3x · Liquid Sunset Business Brokers
Oct 30
- Ask
- C$600K
- Revenue
- C$1.03M
- Profit
- C$183K
- Margin
- 18%
- Multiple
- 3.3x
- Age
- n/d
- Label
- Worth Studying
- Reason
- Big and profitable, but an 18% margin and no stated founding year keep it from rating as a purchase.
Why it's interesting
- Annual maintenance plans, billed in advance, bring in nearly half of the CAD 1.03M revenue; about 90% of clients renew, and prices on those plans were recently raised.
- The sister company's subscription integration apps sell both to the firm's own clients and to other dealers of the same platform, a revenue line not tied to consultant hours.
- Clients are spread across not-for-profit and community living, distribution and warehousing, and job shops, rather than one sector.
- The retiring owner offers up to about two days a week after closing, and seller financing is being considered.
What to watch
- The CAD 183K profit is the combined figure for both companies and is the owner's earnings before paying a replacement, so an 18% margin leaves little room once a manager is hired.
- The whole business rests on one accounting software vendor's dealer programme (not named on the listing); a change in dealer terms or a vendor push to sell direct would hit maintenance income.
- Consultants, admin and a programmer work from a leased Kitchener office with a weekly in-office day, so a buyer likely needs to be local or keep an on-site lead; lease terms are not given.
- No founding year and no revenue trend are disclosed, and the split between maintenance, consulting and app revenue is only partly known.
Who it fits
An operator with accounting or ERP consulting experience near Kitchener who can lead a small consulting team and fund about CAD 600K, possibly with seller help.
Ask the seller
- Which accounting platform does the firm resell, and what notice or renewal terms does its dealer agreement carry?
- How much revenue and profit come from the sister company's integration apps, and who owns their code?
- Which client relationships and consulting work does the owner handle personally, and what would it cost to replace that?
Growth plays
- Recruit more of the platform's dealers in other provinces and US states to resell the integration apps, since some dealers already buy them.
- Turn the community living client experience into a fixed-scope setup and support package marketed to other Ontario community living agencies.
Oct 30Added to Acumen Wire